Organization of internal audit
The company sets up an Audit Office under the Board of Directors, and allocates competent and appropriate number of dedicated auditors in accordance with the company's scale, business conditions, management needs and other relevant laws and regulations. The auditors are responsible for the company's internal auditing and supervision of the auditing of subsidiaries.
The appointment and dismissal of the audit supervisor of the company shall be approved by the audit committee and submitted to the board of directors for resolution. The appointment, dismissal, evaluation, salary and remuneration of internal auditors shall be submitted by the audit supervisor and approved by the chairman of the board.
Operation of internal audit
The audit unit shall draw up an annual audit plan based on the results of the risk assessment. The audit plan shall be implemented to evaluate the company’s internal control system followed by audit and follow-up reports regularly submitted to the audit committee for review. The purpose is to assist the board of directors and managers in assessing and reviewing the internal control systems and measuring the effectiveness and efficiency of operations.
The scope of audit shall cover all operating activities. In addition to the control operations classified by the types of operating cycles according to the characteristics of the industry to which the enterprise belongs, it shall also include the control operations specified in Article 8 of the "Public Offering Company Establishing Internal Control System Processing Guidelines".
Auditors should uphold the spirit of detachment and independence, adopt an objective and fair stand, and perform their audit duties in accordance with the principle of honesty and credibility. Internal auditors should continue to improve the quality and ability of auditing.
In order to implement the company's self-supervision mechanism, timely respond to changes in the environment, adjust the design and implementation of the internal control system, and improve the evaluation quality and efficiency of the internal audit department, the company conducts a self-assessment of the internal control system every year. The internal audit reviews the self-assessment operations performed by each unit, including checking whether the operation is performed and reviewing documents to ensure the quality of the implementation, integrating the self-assessment results, and improving the situation with the internal control deficiencies and abnormal issues found by the auditing unit. The assessment serves as the main basis for the board of directors and the general manager to assess the effectiveness of the overall internal control system and to issue an internal control system statement.